inventory management module

Inventory Management Module Inventory is the heart of the business, it is from here all other parts of the business get sufficient energy to live. If properly managed, the business remains healthy, otherwise always messy. Odoo inventory management is a resourceful module which can be u<lized by any business organiza<on irrespec<ve of their size. It is designed in such a flexible manner. Odoo inventory is fully integrated with other applica<ons, such as Purchase, Sales or Inventory. But is not limited to those processes, it is also fully integrated with our e-Commerce, Manufacturing and Repairs applica<ons. To Access inventory and warehouse management module in your ERP, you have to install ‘Inventory Management’ app from Odoo.

Odoo inventory management makes a worthy product to use because of the following features.

Clean and Fast: Odoo Double entry inventory management, flexible design, modern user interface, mobile control and tracking mechanisms make Odoo a clean and fast performing ERP.

Basic opera2on support: Prepare delivery order in simple steps, control and manage incoming shipments, prepare inventory counts (cycle counts), mul<ple loca<on management, barcode-based packing, efficient scrap management, stock transfer op<on etc. Odoo support all the basic and advanced opera<ons takes place in a warehouse.

Advanced Rou2ng

Odoo advanced rou<ng support opera<ons like:

Drop-shipping: Deliver to customers straight from your supplier based on products, orders or customers.

Cross-Docking: Unload incoming material and directly transfer to outbound gates with liRle to no storage in between.

Put away & Removal strategies: Define your own storage and removal strategies; FIFO, nearest available zone, LIFO, etc.

Pick - Pack - Ship: Design your own order process flow. Deliver to customers in one step (delivery order) or several steps: picking, packing, and shipping.

Push & Pull Routes: Design your own product routes to automate transfer orders between warehouses or loca<ons.

Mul2-Warehouses: Manage all your warehouses with the same system and define replenishment rules between warehouses.

Replenishments

To keep your inventory properly replenished, Odoo provides op<ons like:

Minimum Stock: Have proposi<on of purchase orders (or request for quota<ons) created by Odoo based on your future stock forecast.

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Purchase Proposi2ons: Get purchase order proposi<ons based on supplier lead <mes, product demand and inventory forecasts.

Make-to-Order: Purchase raw materials or manufacture products to order. Define your own routes specific to warehouses, products, orders, etc.

Request for Quota2ons: Want to nego<ate a price with suppliers every <me you buy a specific product? Odoo can trigger request for quota<ons automa<cally based on future needs.

Traceability

Tracking your product inside and outside the inventory is a challenging task. But Odoo traceability features like ‘Lots Tracking’, ‘Ac<vity Log’, ‘Serial Numbers’, ‘Perpetual valua<on’ make it easier for you.

Product Management Features

Product Types: Odoo supports several product types that have different behavior: physical products, consumables, services, digital products.

Kits: Odoo’s ki`ng features allows your salesperson to sell a kit, but you will deliver a set of products.

Custom fields: Add as many custom fields as you want on products to handle your business needs.

Mul2-Level Variants: Define mul<ple level variants in just a few clicks. Create matrix based on colors, sizes, aRributes, etc.

Mul2ple unit of measures: Odoo supports mul<ple unit of measures and converts automa<cally for you: buy a pallet of beer, sell packs of beers.

Expira2on Dates: Track expira<on dates on products.

Mul2ple barcodes: Create custom barcodes with specific codes to implement desired behaviors, such as a specific promo<on.

Business intelligence

The capability of Odoo BI and repor<ng tools are already explained in many modules. Odoo BI tools perform similar admirable jobs here in Manufacturing module by providing reports like inventory forecast, customer transac<on drilldown reports, perpetual inventory valua<on reports etc.

Word Defini2on:

Warehouse: A warehouse in Odoo is a loca<on where you store products. It is either a physical or a virtual warehouse. It could be a store or a repository.

Loca2on: Loca<ons are used to structure storage zones within a warehouse. In addi<on to internal loca<ons (your warehouse), Odoo has loca<ons for suppliers, customers, inventory loss counter-parts, etc.

Lots: Lots are a batch of products iden<fied with a unique barcode or serial number. All items of a lot are from the same product. (E.g. a set of 24 boRle) Usually, lots come from manufacturing order batches or procurements.

Serial Number: A serial number is a unique iden<fier of a specific product. Technically, serial numbers are similar to having a lot of 1 unique item.

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Unit of Measure: Define how the quan<ty of products is expressed. Meters, Pounds, Pack of 24, Kilograms etc. Unit of measure of the same category (ex: size) can be converted to each other’s (m, cm, mm) using a fixed ra<o.

Consumable: A product for which you do not want to manage the inventory level (no quan<ty on hand or forecasted) but that you can receive and deliver. When this product is needed Odoo suppose that you always have enough stock.

Stockable: A product for which you want to manage the inventory level.

Package: A package contains several products (iden<fied by their serial number/lots or not).

Procurement: A procurement is a request for a specific quan<ty of products to a specific loca<on. Procurement are automa<cally triggered by other documents: Sale orders, Minimum Stock Rules, and Procurement rules. You can trigger the procurement manually. When procurements are triggered automa<cally, you should always pay aRen<on for the excep<ons (e.g. a product should be purchased from a vendor, but no supplier is defined).

Routes: Routes define paths the product must follow. Routes may be applicable or not, depending on the products, sales order lines, warehouse, etc. To fulfill a procurement, the system will search for rules belonging to routes that are defined in the related product/sale order.

Push Rules: Push rules trigger when products enter a specific loca<on. They automa<cally move the product to a new loca<on. Whether a push rule can be used depends on applicable routes.

Procurement Rules or Pull Rules: Procurement rules describe how procurements on specific loca<ons should be fulfilled e.g.: where the product should come from (source loca<on), whether the procurement is MTO or MTS etc.

Procurement Group: Routes and rules define inventory moves. For every rule, a document type is provided: Picking, Packing, Delivery Order, Purchase Order etc. Moves are grouped within the same document type if their procurement group and loca<ons are the same.

Stock Moves: Stock moves represent the transit of goods and materials between loca<ons.

Quan2ty On Hand: The quan<ty of a specific product that is currently in a warehouse or loca<on.

Forecasted Quan2ty: The quan<ty of products you can sell for a specific warehouse or loca<on. It is defined as the Quan<ty on Hand - Future Delivery Orders + Future incoming shipments + Future manufactured units.

Reordering Rules: It defines the condi<ons for Odoo to automa<cally trigger a request for procurement (buying at a supplier or launching a manufacturing order). It is triggered when the forecasted quan<ty meets the minimum stock rule.

Cross-Dock: Cross-docking is a prac<ce in the logis<cs of unloading materials from an incoming semi-trailer truck or railroad car and loading these materials directly into outbound trucks, trailers, or rail cars, with no storage in between. (Does not go to the stock, directly from incoming to packing zone)

Drop-Shipping: move products from the vendor/manufacturer directly to the customer (could be retailer or consumer) without going through the usual distribu<on channels. Products are sent directly from the vendor to the customer, without passing through your own warehouse. Removal Strategies: the strategy to use to select which product to pick for a specific opera<on. Example: FIFO, LIFO, FEFO.

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Put away Strategies: the strategy to use to decide in which loca<on a specific product should be set when arriving somewhere. (Example: cables goes in rack 3, storage A)

Scrap: A product that is broken or outdated. Scrapping a product removes it from the stock.

Product variant: Basically, we have two methods to add a product. Product with “Variant” op<on and standalone product. For example, if you want to add two products say iPhone 7 black, iPhone7 white, to your system. Here you may add two different products or two variants under a single product.

Manage Product

Inventory > Inventory control > Product > Create

All the fields under this form is very important:

• Can be sold: Tick this and the product will be listed in sales

• Can be Purchased: <ck this and the product will be listed in purchase

• Can be Expensed: if the product is for Internal usage

• Product type: whether the product is Stackable, Consumable, or Service

Under Inventory tab.

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• Routes: The way which your company acquire this product.

• Vendor: Under this sec<on you can add the Vendors (suppliers) of this product.

• Tracking: internal tracking mechanism, either via Lot no or via Serial number

Under Sales Tab.

Website Categories: here you can specify the category under which the product should be displayed in E-commerce website

Alterna2ve/Accessory Product: associated product to list in Website

Sales Condi2ons: specify the warranty period.

Point of Sales: if you are using POS and mark the product to be available in the POS machine.

Under product Variant tab you can add variants of this Products.

• Click <Add an Item>

• Add an AWribute for ex: Color

• Then add aRribute Values

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Based on the ARributes and values you provided, system will generate all combina<ons of varia<ons under “Variants BuWon”.

• You may delete and add any variant any<me.

• Follow Variant Price tab to adjust prices of all variants.

Note: You can update inventory aRributes like Quan<ty in Hand and Procurement request etc. from the same window. You can Update/Delete a product informa<on from same menu i.e. Inventory > Inventory control > Product.

General Configura2ons

Inventory> Configura2on> SeYngs> Products

• Unit of Measure: By <cking the second op<on you can Sale/Purchase products in a different unit of measure. For example, you may buy BoRle as a dozen and sell it individually.

• Product Variant: Tick here to include product variance in inventory.

Inventory> Configura2on> SeYngs> Traceability

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• Lots and Serial Numbers: This field specify how you track your item in inventory.

• Expira2on Dates: if you would like to track product life span or expira<on date.

Inventory> Configura2on> SeYngs> Loca2on and Warehouse

• Procurement: choose the method to Reserve a product, aqer a sale order is confirmed. In second op<on you can set a scheduler to reserve product

• Warehouses and Loca2on usage level: Choose according to your usage level or if you manage mul<ple warehouse and loca<on within the company

• Routes: Choose advanced rou<ng, if your procurement contain more than one step

• Drop shipping: this allows you to configure different delivery op<on for your suppliers.

Dashboard

Dashboard give a glimpse to all the opera<ons in your Warehouses.

Click <More> to view all the opera<ons in the warehouse.

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Inventory > Opera2ons > All Transfers

• You can see all confirmed Sales and Purchase orders listed here.

• You can click and view the status of each one.

Warehouse Configura2on

You can add any number of warehouses under your company. As we men<oned earlier we can have mul<ple ware houses.

Inventory > Configura2on > Warehouse Management > Warehouses > Create

Loca2ons

Loca2ons are different places in your ware house. Or these are the different sec<ons in your ware house were different types of ac<ons are done. You can add single or mul<ple loca<ons. A loca<on means a space in the warehouse, a shelf, a floor, etc. A loca<on is part of one warehouse and it is not possible to link to another warehouse. Actually all In and Out transac<ons are carried out and Recorded through Loca<ons. (If you look into Purchase order, you can see Deliver to op<on, which essen<ally indicate a loca<on)

There are three types of loca<on:

• Physical Loca2on: These are Loca<ons in your warehouse

• Partner Loca2on: This loca<on not under your warehouse

• Virtual Loca2on: This is a virtual loca<on which is not available physically

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You can view all the loca<ons available under you company from

Inventory > Configura2ons > Loca2ons

Create a Loca2on

Inventory > Configura2ons > Loca2ons > Create

• Parent loca2on: in case you are crea<ng a loca<on under another loca<on (loca<on hierarchy)

• Owner: Choose a user to manage it.

• Fill all other necessary fields and click <Ac2ve> and <Save>

Opera2ons

Opera2on means, different opera<ons carried out in your ware house like Receipts, Internal Transfer, and Delivery Order. These are basic opera<ons carried out in a warehouse. However, you can add more custom opera<ons from.

Inventory > Configura2on > warehouse management > Opera2on Types > Create

Fill the opera<on details and click <Ac2vate> and <Save> now these opera<on will be listed in your Dashboard.

Routes

it is the different possible ways through which a product is acquired or sold from your ware house. You can simply follow single step process (like vendor's warehouse to your warehouse) or can configure mul<ple step routs. You can see a field asking the Rout while crea<ng a Product. Rout ensures a sale or purchase product is properly tracked.

You can view all the Routes from:

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Inventory > Configura2on > Routes

Unit of Measure

Different products have different unit of measure. You can Configure all these unit of measures to you inventory.

Inventory > Configura2ons > Unit of Measure >

• Unit of Measure: Name of unit of measurement.

• Category: you may add new category or select from an exis<ng one.

• Type: here you have three op<ons;

Reference Unit- means, this will be the base unit for all units in this category (for example we can set Meter as base for length category.)

Bigger than reference unit- Example, if meter is reference unit the while you add KM you must choose this op<on

Smaller than reference unit- opposite of the above

Reordering Rules

You can create a custom Rule to replenish your Inventory automa<cally. For example, if you wish to re-order a product when the stock reaches 10 units. You can set a Rule, and when you Run Scheduler system will check this Rule and take appropriate ac<on automa<cally.

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Inventory > Inventory Control > Reordering Rules

• Minimum Quality: minimum number of quan<ty should be kept in inventory

• Maximum Quan2ty: Quan<ty upper limit

• Quan2ty Mul2ple: Lowest number of items can be ordered at once

• Procurement Group: Set procurement and Picking op<on

Inventory Adjustment

You can update stock details in two ways, first one is via going to product details and update individually. You can update mul<ple product details also.

Inventory > Inventory Adjustments

• Give a Name, s e l e c t t h e required products and click Start Inventory

• You can change the stock details by clicking over the product quan<ty.

• Commits the changes and click <Validate>

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Scrap

To record the scrap products in your inventory.

Inventory > Inventory Control > Scrap

Fill the Scrap product details and Save and mark as Done

Scheduler

Run Scheduler will check all the Reordering Rules you created and make appropriate ac<on.

Inventory > Scheduler > Run Scheduler

Click Run Scheduler

Reports

Odoo inventory management system provides the user very effec<ve and simple reports to make more wise decisions. Such as:

• Inventory Valua<on to know your current stock per quan<ty and value wise.

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• Stock Moves to re-evaluate all stock movement of the product within your warehouse.

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inventory management module

Documents